Vedanta Share Price: Anil Agarwal-led firm gains 2% as brokerages hike targets up to 16% after Q2 results

Vedanta Share Price Target: Anil Agarwal-led Vedanta Ltd on Friday reported a 37.9 per cent year-on-year decline in consolidated profit after tax (PAT) to Rs 3,479 crore for the quarter ended September 2025, impacted by an exceptional item.

The company had posted a profit of Rs 5,603 crore in the same quarter last year.

According to the company’s regulatory filing, the PAT decline was primarily due to an exceptional item outgo of Rs 2,067 crore during the quarter.

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However, Vedanta’s total income rose to Rs 40,464 crore, up from Rs 38,934 crore in the year-ago period, supported by higher commodity prices and improved operational performance across key segments.

On the BSE, shares of Vedanta were trading 2.41 per cent higher at Rs 505.50, gaining Rs 11.90 from the previous close in the early trading session, as investors reacted positively to the earnings and upbeat commentary from global brokerages.

Operational Highlights and Outlook

Vedanta’s second-quarter EBITDA stood at Rs 11,400 crore, up 16 per cent sequentially, in line with market expectations. The company guided for an FY26 EBITDA of over US$6 billion, compared to earlier estimates of around US$5.7 billion.

Better commodity prices, operational efficiencies, and higher power sales drove the improvement.

Vedanta also highlighted progress on its expansion and backward integration projects, particularly in the aluminium, power, and zinc segments. The company reiterated that its demerger process remains on track for completion by the end of FY26.

Meanwhile, debt levels at the parent company, Vedanta Resources Ltd (VRL), are reported to be “well funded,” easing near-term concerns over leverage.

Brokerage Views

JP Morgan maintained a Neutral rating on Vedanta, with a revised target price of Rs 505 (up from Rs 495), noting that Q2 performance was broadly in line with expectations.

CLSA maintained an Accumulate rating and raised its target price to Rs 580 from Rs 520, citing strong operational performance, favourable commodity trends, and steady balance sheet improvement. It expects expansion projects and backward integration to remain key growth drivers in the coming years.

Citi remained the most bullish, maintaining a Buy rating and raising its target price to Rs 585 from Rs 500. The brokerage highlighted that the sequential EBITDA growth was driven by stronger commodity prices, improved volumes, and favourable currency movements.

It also pointed out that Vedanta’s balance sheet remains comfortable and that the completion of its demerger by FY26 could unlock further value.

Citi further noted that Vedanta is the highest bidder for Jai Prakash Associates (JPA) and plans to invest about Rs 37 billion upfront and Rs 124 billion over five years if the acquisition is approved.

The brokerage believes Vedanta could monetise certain assets to finance the deal, minimising financial risk.

Overall, despite a decline in quarterly profit, analysts remain constructive on Vedanta’s medium-term prospects, citing operational recovery, project ramp-ups, and improving commodity prices as key positives for the stock.